Sales Marketing Inc
in a perfct competition markt, if firm incr’s price abve markt price, will TR inc or demand curve slope down?
if the firm increases price above the market price, will its total revenue increase? Profits increase? Sales drop to 0? or demand curve will slope downward? ………..which one of these four choices will occur?
Sales drop to 0.
For perfect competition if firm charges price higher than market price then sales drop to zero, thus output of the firm will be zero too and firm will experience loses (fixed costs).
Demand curve for perfect competition is horizontal line.
FiLwAy MarkEtiNg Inc.(NatioNaL SaLEs CoNvEnTion)
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